RichardRubin

An uncomfortable question looms over the tax debate in Congress: What’s Plan B?

Border adjustment, a pillar of House Republicans’ tax proposal, is taking a beating. Big retailers are lobbying aggressively against the concept, which would tax imports and exempt exports. Senate Republicans have expressed views ranging from skepticism to hostility. Even some House Ways and Means Republicans are wary.

With Democrats sidelined, just three GOP senators could kill the House tax plan; already, more than that oppose border adjustment.

Despite that daunting math, border adjustment isn’t dead, and that is partly because Republicans haven’t developed palatable alternatives that avoid huge budget deficits or prevent the corporate tax base from fleeing abroad.

Border adjustment is essential to overhauling the tax code and encouraging investment in the U.S., and House Republicans are going to keep pushing, Rep. Kevin Brady (R., Texas), the plan’s chief architect, said Thursday.

Intraday Data provided by SIX Financial Information and subject to terms of use. Historical and current end-of-day data provided by SIX Financial Information. All quotes are in local exchange time. Real-time last sale data for U.S. stock quotes reflect trades reported through Nasdaq only. Intraday data delayed at least 15 minutes or per exchange requirements.